According to graham and harvey's 2001 survey (figure 8.2 in the text), the most popular decision rules for capital budgeting used by cfos are ) irr, npv, payback periodb) profitability index, npv, irrc) npv, irr, mirrd) mirr, irr, payback period

A) IRR, NPV, Payback period

Explanation:

According to Graham and Harvey's 2001 survey, for capital budgeting  decision making, the following capital techniques are used which are described below:

Internal rate of return: It is that rate of return in which the net present value is zero that means initial investment and the present value of the annual cash inflows are equal

Net present value: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

The computation of the Net present value is shown below

= Present value of all yearly cash inflows after applying discount factor - initial investment

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

the correct answer is b.)